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Council to vote on sewer rate hike

By TONY WAGGONER
Friday, November 21, 2008 10:50 PM MST

Sewer rates would climb at least 32 percent over three years if the Lake Havasu City Council votes for an increase Tuesday.

The increase would begin April 1, 2009. Rates would go up again the following two years.

The item is on the agenda for public input, as sewer rates remain a very hot issue for many in the community.

“The numbers are what they are,” Charlie Cassens, city spokesman, said. “We have bond obligations that have to be paid, and we have to pay them.”

On Sept. 9, the council received an update from Red Oak Consulting on the Financial Feasibility Report of the Wastewater System. The report detailed a need to raise sewer rates to generate more revenue for the city’s wastewater bonds, which currently is just over $313 million with some duplication and refinance amounts.

If passed, residents could see a 10 percent increase effective April 1, 2009. Rates would increase 11 percent over the following two years, bringing the minimum monthly sewer bill to $45.50 a month in 2011 for residential homes. Next year, the average monthly bill for residential is expected to be near $36.50 a month.

City Finance Director Gayle Whittle was quick to point out residents have not seen an increase in over two years. It may also be worth noting in 2005 sewer rates were anticipated to be $57.05 per month for the fiscal year 2007-08, according to a previous Red Oak Consulting study on residential homes.

In the past, the city had rates adjusted every year by July 1, with a rate change occurring every April. They have now combined rate adjustments with rate changes, conducting both every April.

Residents may have control of how high their rates go. Whittle said conservation during the wintertime is a good place to start. The city calculates residents’ set rates by averaging the three lowest bill amounts from December through March. In the winter months, people tend to use less water, Whittle said, especially for outdoor watering. She suggested residents inspect their homes for leaks and adjust irrigation schedules to help keep their winter rates down and get a lower set rate.

“People’s rates more clearly reflects what they use indoors,” Whittle said.

The city established publicity campaign during the winter quarter to assist customers in managing their sewer bills.

The council is required to hold a public hearing before raising any rates.

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Reader Comments

Joe Common wrote on Nov 26, 2008 10:59 AM:

" Well, lets take a look, first we had electric go up. Now my bill is obver $100, now sewer, that will be over $100. With my wife only having a part time job because jobs are no where to be found, we are struggling like so many others. I work 50 hours a week, my wife works a part time and unemployment to make up the difference. Anymore tax hikes and I will go under, the bills are just getting paid right now by the skin of our teeth. STOP the tax hikes, a mismanage of money on the city does not mean we have to pay for it. I do not want to loose my home. "

newbie wrote on Nov 25, 2008 5:26 PM:

" Resident: Sorry you misunderstood. Everyone with a water/sewer line pays a service fee for maintenance each--same fee, every resident. To that is added the cost of water based on how much you use. Then added in is cost of sewer use, about 1/3 of water consumption. There were four entries on my water/sewer bill: two basic charges, always the same and the same for everyone and two entries for consumption of water and use of sewer, same rate for everyone per gallons used. Use a lot, pay more. Conserve, pay less. Seems fair to me. What does trash pick-up have to do with water? Our trash came out of our property taxes. If you had an address, you payed for trash pick-up whether or no you had a bag to put out. Active recyclers got a credit on their city income taxes. "

wrote on Nov 25, 2008 9:07 AM:

" www.investopedia.com -"The phrase ad valorem is Latin for "according to value". In the case of municipal property taxes, property owners have their property assessed on a periodic basis by a public tax assessor. The assessed value of the property is then used to compute an annual tax, which is levied on the owner by his or her municipality. Ad valorem taxes are incurred through ownership of an asset, in contrast to transactional taxes such as sales taxes, which are incurred only at the time of transaction." WHERE DOES IT SAY THEY CAN"T INCREASE? "

mouse wrote on Nov 25, 2008 6:56 AM:

" Whine ,cry, recall the city council.Like that's going to change anything.The federal goverment mandates no child left behind with no funding so who pays Az tax payers.We are a border state with swiss cheese borders who pays the freight to police the borders the federal goverment?no the Az tax payers.Homeland Security did give the city 250k I think to buy a bomb robot the state gives the city money to cage rocks along rte 95 now those are high priority waste of tax dollars. All the people here can do is bellyache and point fingers it the Liberals it's the Conservatives when it's both.You keep electing the same hacks Buster,Ron and Mark and expect some rosie outcome it ain't going to happen people.Like a wise man told me once the words you don't want to here from a liberal is we have to raise taxes because he talking to 100% of the people. The words you don't want to here from a conservative republican is we are going to cut your taxes because he's talking to the top 5% of tax payers the other 95% might as well have voted for the liberal. "

To Resident wrote on Nov 25, 2008 1:17 AM:

" You sound bitter maybe you should move to somewhere thats not hot half the year. "

The next sound you hear wrote on Nov 24, 2008 8:24 PM:

" Will be Millions of Dollars going down the sewer drain and it really does SUCK. Why are the charges based on other than usage. "

Resident wrote on Nov 24, 2008 1:21 PM:

" Hey Newbie, they can't charge on pure water usage alone. Half the city vacates during the summer and they would go broke. Another 15% leave by April to head back to the cold country. That places the burden back on the worker who remains here trying to survive in the heat. The way it is you pay for garbage year around if you have your water turned on. "

To Whiners wrote on Nov 24, 2008 11:25 AM:

" Yes, to a lot of people in this town $200 a year is a significant amount. For someone like Blue, she could afford enough food so that she didn't have to go without or maybe buy a few gifts for the kids at Christmas time. We are in a recession heading for a depression and the City Council says tax, tax, tax. When the economy bounces back then tax...until then, leave us alone. My husband got laid off over 2 months ago and our savings are dwindling fast. Work here is almost non-existant and those who do have a job have had their hours cut big time. What gets me is that our Mayor is a CPA or at least claims to be and he couldn't figure the numbers on our current situation. The sewer project needs to be stopped...now. We have much bigger problems than the un-needed sewer project. And by the way, "look in the mirror", stop blaming republicans...if we lived in a state that was mostly democratic then it would be their fault??? I know some democrats that live in this town that wanted this stupid sewer project so stop pointing the finger. "

paul wrote on Nov 24, 2008 9:04 AM:

" keep the mayor and cty councel the will flush your money down the sewer system "

Barb wrote on Nov 24, 2008 7:55 AM:

" How did the condo owners get a pass on an increase? Why not give everyone a pass during these terrible economic times and just stop the sewer project until this depression/recession is over? You are hurting every homeowner in this city. Show some concern for our financial meltdowns. It's not just Wall Street looking for a break, it's everyone. "

Jellly wrote on Nov 24, 2008 7:52 AM:

" wethepeople, the sewer will not protect the Colorado River, that is the big lie in this entire fiasco. The river was never polluted by septics in the first place. The river was polluted by the outdated, needing repaired, existing sewer system. In fact the only real pollution concern the river has coming from LHC is the existing sewer system and it's spills. The Kiowa ponds are also mentioned in the Governors' Colorado River Report. The idea that the Federal Governments should pitch in, I believe is wrong. I do not believe the Federal Government should pay for cleaning up the river when it is not polluted. Do you? "

Had it with Havasu wrote on Nov 23, 2008 9:13 PM:

" Easy Moron.
I haven't paid a sewer bill in 20 years. In the next year or so I will pay a $2000 connection/treatment capacity fee and at least 2 other monthly fees associated with this useless sewer expansion. The total will be around $3,000 for the first year and likely $800~1,000 for the 2nd year and increasing every year after that. The water/trash bill has gone up 400% in twenty years. Add the new sewer fees to the utility cost and maintaining a single home here in Havasu adds up to a significant amount. In fact, as I didn't refinance and suck all the equity out of my home the water/trash/sewer/electric bills and property taxes add up to about 2/3rds of my mortgage payment. Thing is, the mortgage payments will end soon. These other bills just keep coming and getting bigger.

It is clear that the City of Lake Havasu is in bigger financial trouble than the civic leaders are willing to admit. So the answer they see is to increase the fees that every property owner pays, and will pay. The answer I see is to stop before spending another $250 million on something we don't need. "

so cal resident wrote on Nov 23, 2008 6:59 PM:

" I just don't get why my bill would be a minimum of $37 when I'm only there 6 weekends or so a year? Its kinda like them saying I know you didnt use your air conditioning for 6 months but we are gonna charge you anyway. "

newbie wrote on Nov 23, 2008 3:25 PM:

" I really don't understand Havasu's unique rating system, except that it seems to be unfairly generating revenue. In Michigan, lawn front and back, summer garden, et cetera our water/sewer cost $27-32 a month, $37.00 max if we had new plantings. We payed the same rate as anyone else, they payed the same rate as us. Everyone payed the same rate based on current usage/consumption. Use more, pay more. Use less, pay less. Simple. Everyone had the SAME water service fee, SAME sewer service fee. To that was added water consumption, so much for cubic feet used. Sewer 'usage' was about 1/3 to 40% of water consumption, year 'round. If we were away, never flushed a toilet nor had sprinklers come on, Basic bill was $22.00 for in-place service and zero consumption (thus zero outgo). You payed for what you used on a monthly basis, not at an average rate of what you or a former resident may or may not have used last winter. Everyone had the same basic service fee, and everyone payed for whatever water they used at the same rate. My final bill never varied more than 5-10 dollars. If one had a pool during the summer, it was filled by truck...and reclaimed by truck, assumably to be treated then recycled. Pools were NEVER drained to the street. Never. Why does Havasu make such a chore out of figuring a different rate for every resident? Isn't it all the same water? And why do they assume that whatever water comes into the house is also going into the sewer? I don't get it? "

Mike wrote on Nov 23, 2008 2:38 PM:

" Yes "Whiners", at a time of stress where many families are living hand to mouth,,,, $200 is enough to "break them". "

steve wrote on Nov 23, 2008 11:45 AM:

" we are on sewer and are part time residents.the bill for sewer is $60.00 by it self and we get the pleasure of smelling the Mulbury treatment plant on a regular basis. calls to them do not fix the problem since they never have extra pumps when one fails.ten calls to them this year alone.as far as the council they should all be replaced.like it was stated all they do is waste our money "

Whiners wrote on Nov 23, 2008 10:21 AM:

" You whining bunch of morons! Yes the cost of operating anything increases each year. No, cost do not decrease each year. Take your bill and compare it to two years ago. Take the difference between the two for a monthly charge and time 12. OK, so now you are paying $200 or so more a YEAR. THAT IS GOING TO BREAK YOU? You spend many times that on beer, cigarettes, casino and other needless items. Yet you morons can only think-RECALL. Pull you heads out of the southern hemisphere and look around, the entire US is in dire straits. "

Had it with Havasu wrote on Nov 23, 2008 5:34 AM:

" Do you really think the revenue generated through billing for sewer service is used exclusively to fund the operation and construction of the sewer system?

The funds are raided for whatever whim and whatever new toy because it is easy to hide and easy to allocate more.

We need a watchdog group, an audit by that group. We also need to stop the sewer project, declare a moratorium indefinitely. When the city is solvent and the books balance out without the shortfalls of today and the increased debt to sustain the present spending, we can revisit the unneeded sewer expansion.

Another way of saying we need leadership that cares about Havasu and its people. Enough with the megalomaniacs who seek only to benefit themselves. "

james wrote on Nov 23, 2008 12:40 AM:

" If we the local residents don't take action and recall every moron on the council that votes for the increase, they you we all deserve the results.. It is just amazing how these idiots just say raise the tax because we have to pay the bond debt. Not, recall the fools now before you all go totally broke. Welcome to Havasu "

mayawolf wrote on Nov 22, 2008 7:51 PM:

" Well it seems we all agree here that we are getting the shaft!!! It is time we take action and get rid of these idiots. I hope they read this and do the right thing! But will not hold my breath. "

are you kidding me wrote on Nov 22, 2008 7:49 PM:

" PAT: Who cares about your "vacation" home? Sell it if it's such a hardship or better yet, be a compassionate human being and let "BLUE" live in it with her family for FREE. Gimme a break lady!!
Not only do we need to get rid of the entire council but include some of the city officials as well. Whittle and Cassens would be the first on my list to stand at the unemployment line. "

Sewer Payer wrote on Nov 22, 2008 7:45 PM:

" The sewer bond election ballot said:

Should the city sell $468 million dollars of bonds to be paid back with user fees and ad valorum property taxes with no limit?

So the ballot said the sewer bonds were to be paid with either user fees or the ad valorum property taxes. So far the city has *only* used the user fees.

It's time they froze the user fees, or even better reduce them by 50%, and pay the bonds with the ad valorum property taxes like the election said.

Those taxes cannot be increased, by the way. They would come out of current revenues.

Call the council members and tell them that's how we want the sewer funded, if at all. "

wethepeople wrote on Nov 22, 2008 7:20 PM:

" Unfortunate for the City and residents - there are only a few of us left owning property to pay the ever increasing costs of running the city. Seems to me since this is the Colorado River we are protecting that the Federal Government would pitch in but perhaps we the people asked too late. I thought we were trying to encourage sales of real estate - better go back to the drawing board council. "

RECALL NOW wrote on Nov 22, 2008 3:26 PM:

" Since the current Mayor and council do not seem to care about the people of Lake Havasu City it is time to recall them. They are so far out of touch they need to be replaced. All they seem to do is tax and spend. Time for a total recall now! "

Terry wrote on Nov 22, 2008 2:47 PM:

" Get a list of every Councilman that votes for the rate hike and vote them out of office.
Maybe that will get their attention. "

TLC wrote on Nov 22, 2008 2:33 PM:

" Wow, I sure am glad we passed that sewer bond. Looks to me like they just enjoy screwing us. It is just getting ridiculous. Have you seen the forclosure amount in this town. There are so many people without jobs or cut hours who can barely pay their bills as it is so doesn't it make sense to make things more expensive. Come on who really is running these things. Get a clue! It really just irritaes me beyond words. "

monica wrote on Nov 22, 2008 12:58 PM:

" OK here we go again! We are charged for ALL water we use whether it is in the sewer or not! Also half the town isnt even on sewer so the REST OF US are paying it all!!! When is the meeting? "

Sean James wrote on Nov 22, 2008 12:14 PM:

" Stop the sewer project! That should be our new cause. People cannot afford it here! My sewer bill in L.A. was $18 a month, in Havasu $100!!!! Stop The Sewer Project NOW!!!!! You politicians are no longer in touch with real people, you are idiots, rich, arrogant, socialists that think you can do whatever you want with taxpayer money. I have kids to feed, many in town have families to take care of. food prices have skyrocketed you dumb idiots, you are going to be the ones that start a revolt. "

BornAndRaisedHere wrote on Nov 22, 2008 11:40 AM:

" Has it not occured to the city council that so many people in this town aren't even able to feed themselves, buy gas to get to work, some can't even get a new job after being laid off, yet they are raising prices every chance they get!?!?!

They should read the food bank article.
Ugh. So dumb. "

Blue wrote on Nov 22, 2008 11:31 AM:

" Great. Now I just won't have sewer/water either. My whole family lives here... where am I going to move where I can afford to LIVE? Raise our taxes, raise our electric, raise our sewer... when will our pay scales be raised? The government bails out Wall Street, now they are contimplating the Big 3. When are they gonna bail out the people? If they divided up the money they gave the banks and are considering giving the auto industry between every American, we could probably bail ourselves out, the economy would be better because we'd all be spending that money! I didn't realize that we were all responsible for private jets, luxory cars, and million $$ jewels. If they raise this, too.... what am I going to do? I guess we will see what its like to live w/o water/sewer/trash. Happy Thanksgiving and Merry Christmas everyone. We're all going to be broke. "

Orville McGee wrote on Nov 22, 2008 11:24 AM:

" My Property Taxes on VACANT LOT have went thru a $300 to $1300! USE THAT MONEY! "

M.A.Ratliff wrote on Nov 22, 2008 11:22 AM:

" This is insane! What are you doing with the "windfall" of Property taxes that the City has gotten from Properties going from $100,000 to $300,000 in the past years???? Use some of the money.

This is not the right time to raise anything on anyone. People lossing homes left and right, businesses closing, etc., etc.

Get realy City Council, and just wait til the next election! "

Pat wrote on Nov 22, 2008 10:53 AM:

" What about us that own vacation homes and are only out once a month or so??? "

Irishman wrote on Nov 22, 2008 10:47 AM:

" If this is a joke, I'm not laughing. Are they trying to increase the number of foreclosures here or what? Apparently it is time for all of the city officials to get glass belly buttons so they can see where they are going and what they are doing. "

gjp wrote on Nov 22, 2008 10:03 AM:

" Waste, waste, waste, spend, spend, spend, then tax, tax, tax. The city has to have a consulting firm to tell them how to rape the taxpayers more??? Is there not anyone smart enough in a city position to figure it out? What a surprise that their answer was to tax us some more, then increse fees. Excuse me for not feeling overwhelming gratitude that we have not had an increse in two years. This city is out of control with unnecessary spending and poor planning. Shame on all of you. "

Arliss wrote on Nov 22, 2008 9:47 AM:

" You are going to drive people away from the city and make selling existing homes more difficult.

Do NOT raise my rates until you make the condos pay as much as single family homes! "

SReno wrote on Nov 22, 2008 9:43 AM:

" Now you understand the evils of government control, they spend your money and hard work without asking your input. They are not saying, hey let's raise the money or let's invest in our town to increase revenue for our infrastructure. They are saying we don't care where you get the money, we don't care if it comes from your medicine budget or your ability to buy food or pay your mortgage. We don't care if you starve in the street or end up homeless, you just better pay us, and if you don't, we'll just start taking your homes and any other possession we can get our hands on or maybe we'll just throw you in prison. Extreme...maybe, but this will get much worse before it gets better. "

Look in the miror wrote on Nov 22, 2008 8:20 AM:

" I read on here people complaining about the sewer rate”TAX” hikes. It’s important you understand
When you buy something you need to pay for it. I hear a lot of republicans complaining about
Raising taxes and who do you think has been spending money like its water. Republicans leaders wanting more “The Mall” businesses and needed a sewer system in order to do it.
What better way than have the property owners to pay for it? And sense Havasu is 92% republican I would say you did it to yourselves. "

paul wrote on Nov 22, 2008 8:06 AM:

" start yuor class action i am in "

Sharon wrote on Nov 22, 2008 7:59 AM:

" I've quit watering plants, have a pool and still pay $120.00 plus...and then the sewer line install bill...when is this going to stop....we have done everything to lower our water usage...what do they want...and empty city??? No wonder everyone is selling, this beautiful city has become a ghost town due to financial hardships...and now they are going to seal the deal..THEY SHOULD HAVE THOUGHT THINGS THROUGH WHEN THEY STARTED..Sham on YOU.
NO MORE RATE HIKES...even the large electric company in the Phoenix area was refused rate hikes..so should you be refused. Find a better way of doing business is my suggestion... "

HMMM wrote on Nov 22, 2008 7:40 AM:

" What about those of us who don't have sewer yet? Are our rates going up? Am I paying for a service that doesn't exist yet? "

t wrote on Nov 22, 2008 6:58 AM:

" This sewer project is out of control. Money Money Money and it does not stop.
1. No fee changes
2. If they continue to over run their budget stop the sewer project. "

Mike wrote on Nov 22, 2008 2:14 AM:

" This is BS. If water usage goes up in summer, why are we charged "sewer surcharge"? My swamp coolers both use water in the summer and not a drop in winter. And how much of that goes into the sewer?????? Thats right, not a drop, yet they already surcharge it. What about pools? What about landscaping? Using more water has little to do with sewer usage. Seems to me an oppotunity for some class actions against the city. "

are you kidding me wrote on Nov 21, 2008 11:11 PM:

" This is outrageous! How do you propose to squeeze this rate hike out of us tax payers Mr. Whittle? Your comment of "we have not seen an increase in over two years" goes to show just how out of touch you are with the economic crisis surrounding us---and it's going to get worse. Two years is not that long ago. Are you kidding me?? We were forced into this sewer fiasco and now at every turn you want more. That's right, you're sitting pretty with your city salary so the hell with the poor peons. I've got an idea. Stop wasting money on useless "dog parks" and ugly "rock landscaping." Dogs are getting treated better than us tax payers! You should be ashamed of yourselves. "

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